Behind the soaring Reddit community point tokens: the existing reward system will be redesigned to clarify that Avatars and points can be traded

By Nancy, PANews

Recently, affected by the rumors of the launch of Kraken and the change of terms of service, the price of the point token $MOON of the American social media giant Reddit sub-section r/Cryptocurrency has increased by more than 4.9 times within a week, and the $Bricks of the r/FortniteBR section has increased by 10.6 times. Although Kraken later denied that it would list $MOON, it has been supported by trading platforms such as Crypto.com, MEXC, Gate.io, and SushiSwap. The listing of these platforms is not an official act of Reddit, and the official has not made any statement on this . Meanwhile, the news that Reddit explicitly allows the trading of verified virtual goods is sparking debate in the crypto community.


Both $MOON and $Bricks are actually ERC-20 tokens launched by Reddit on the Arbitrum Nova chain in May 2020, which can be stored in Reddit's Ethereum digital wallet Vault. As community point tokens, $MOON and $Bricks are used to encourage users to publish and produce high-quality content, and can unlock special features, such as purchasing special memberships, which can be used to unlock special loyalty badges, colored usernames, and use GIFs Box emoticons and other exclusive functions such as posting comments, participating in governance voting, or giving rewards to other content creators, etc., the official will be based on the karma obtained by the user (Reddit's scoring system, a high karma score means more popular in the community) $MOON is distributed every four weeks. The total supply of $MOON is 250 million. When the user's karma is positive, rewards can be issued, and if the karma is negative, it will not be issued. At the same time, if the $MOON obtained by the user has not been claimed for more than 6 months, or is used to redeem members Both qualifications or Reddit Coins will be destroyed. Currently, r/Cryptocurrency and r/FortniteBR have approximately 6.562 million and 2.613 million subscribers, respectively.


Terms of Service: Reddit Avatars and Community Points are Verified Virtual Goods, Tradeable

Recently, however, Reddit amended its terms of service to allow the trading of verified virtual goods, including Reddit Avatars and community points. According to r/Cryptocurrency MOONs unofficial Twitter account disclosure, Reddit will delete Coins (previously known as Credits, a non-tokenized virtual coin) and Awards, two Web2-style reward mechanisms, and only retain Avatars NFT and community points. At the same time, the terms also state that “you may earn, claim, buy, sell or gift certain cryptographically verifiable virtual avatars, commodities, currencies or items.”


Reddit issued a document announcing that it will stop its existing reward system and disable Coins and Awards

In fact, Reddit posted on its official website not long ago that Coins and Awards will be disabled after September 12 this year. This also means that Web3 products such as Avatars and point tokens will occupy a more important position in Reddit.

At present, the social media track is ushering in changes. Although Web2 social products can meet all our daily social needs, there are still Web3 native products such as Threads and Damus that discount the decentralized social revolution. The situation is also forcing those traditional social platforms to make changes. For example, Twitter recently announced that it will share advertising revenue with content creators.

And Reddit has been promoting the transformation of Web3. In the past, it has included accepting Bitcoin payments, launching community points based on Ethereum, issuing NFT based on Polygon, and reaching cooperation with Google Play's tokenized digital asset policy, etc., bringing more to Web3. As of July 19, for example, the total number of subscribers of r/Bitcoin, the two top encryption communities on Reddit, has reached 1.06 million, and r/Ethereum has exceeded 2.41 million.

However, for users, these initiatives have not brought enough value back. As Reddit mentioned, "The current reward system is on the decline. Many users report that Reddit's existing reward forms are disorganized and not worth enough." To this end, Reddit decided to develop a new reward mechanism, wanting to create A simple, easy-to-use and understand system, but rewarding content and contributions remains a core part of Reddit.

According to Reddit, in the next few months, the platform will share more about the new direction of rewards, allowing Reddit users to empower each other and create more meaningful ways to reward high-quality contributions on Reddit. However, Reddit also stated that it is currently undergoing early testing and feedback, and it is not yet ready to share official details.

From this point of view, Avatars NFTs and point tokens seem to be playing an important role in Reddit's new rewards system. Judging from the abandonment of Reddit Coins, the main source of income, Reddit, which is about to conduct an IPO in the second half of this year, is showing an attitude of breaking its arms to survive.